What is Solidly? Solidly is an AMM platform built on the Fantom blockchain and launched on Ethereum. Solidly is a fork based on Uniswap V2, designed to optimize important issues such as unoptimized fee sharing, unsustainable Liquidity Mining, etc. So what features does Solidly have? What is its mechanism of action? Join the Weakhand team to find out below in this article!
To understand more about Solidly, you can read the articles below:
- What is Uniswap (UNI)? Uniswap Cryptocurrency Overview
- What is Curve Finance (CRV)? Curve Finance Overview of Cryptocurrencies
- What is Olympus Knife (OHM, gOHM)? Overview of Cryptocurrency Olympus Dao
- How Solidly (SOLID) Works
What is Solidly?
Solidly is a decentralized exchange with the aim of optimizing capital efficiency. Solidly enable low-cost, near-zero slippage transactions on assets such as altcoins or stablecoins. The protocol incentivizes liquidity providers with transaction fees and project’s original token.
Solidly designed the model to generate more fees for veSOLID holders. Although it is a fork of Uniswap, Solidly is different from Uniswap and Crv in terms of fees when completely distributing 100% of fees for governance tokens.
What is tick(3,3)?
The term ve(3,3) is a combination of two models, Curve Finance and Olympus Dao.
- “draw” is called “voting margin”. This means that when you lock a token into the pool, the protocol returns a voting token in the form veToken. This protocol mechanism is similar to the Curve project. For example, the SOLID token key receives veSOLID.
- “(3,3)” notation refers to a game theory used in the OlympusDAO ecosystem to maximize project liquidity while also maximizing token holders’ profits.
Mechanism of action
Key features of Solidly
Swap
Solidly enables trading between different ERC – 20 tokens on Ethereum and EVM compatible chains. Solidly specializes in providing tailored trading solutions between correlated and uncorrelated assets. Solidly supports 2 liquidity pools:
- Volatile Pools: A group of assets with no price correlation and volatile asset pairs that use the formula x * y = k to determine price. (this is the same model as Uniswap V2)
- Stable Pools: A group of assets that are directly correlated with each other (eg USDT/USDC,..). The prices of the two assets will trade very close to each other and thus represent a different way of allowing large trading volumes with low slippage. Stable asset pairs use the following formula x³y + y³x ≥ k to determine the price. (This is the same model as Curve Finance)
Fees
Solidly v2 is the first fork to implement fully dynamic fees. Trading fees are adjusted for volatility and can range from 0% to 3%. TAll volatility groups are set to 0.2% and stability groups to 0.02%. All fees are paid to veSOLID voters in proportion to their underlying assets.
Providing Liquidity
Liquidity providers on Solidly can lock their LP tokens over time to earn SOLID tokens. The number of SOLID tokens awarded depends on the number of voters a given pool manages to obtain from veSOLID holders.
By earning weekly rewards, LPs can hedge against market volatility and earn a set amount of money.
Bribes and Incentives for Pools
The project has discussed how SOLID lockers will receive a significant portion of the weekly token issuance. The remainder will go to the AMM liquidity pool – and it is veSOLID holders who will decide which pool.
The mechanism will take place as follows:
- veSOLID holders receive fees generated by the pools they vote on;
- Therefore, they will be interested in voting for pools that generate more fees – that is, have higher transaction volumes and add value to the protocol;
- To incentivize veSOLID holders to vote for them, pool creators can use so-called bribe (Bribes) – a concept introduced by Curve Finance. There is nothing evil about bribes in DeFi: they are simply rewards tied to a pool. The bribe is distributed to all liquidity locks in that group.
Solidly’s mechanism of action
Solidl draws a lot of inspiration from another major DeFi protocol, Curve Finance. It is an AMM where users can lock up CRV tokens in exchange veCRV (‘deposit slip’). The longer the lock period, the more veCRV you get.
SOLID and veSOLID
SOLID is Solidly’s native token, users will stake SOLID and receive veSOLID (vote-escrowed SOLID), but the ratio will not be 1:1 like other protocols. Instead it will depend on the lock period:
- 6 months: receive 0.125 veSOLID for 1 SOLID;
- 2 years: receive 0.5 veSOLID for 1 SOLID;
- 4 years: receive 0.1 veSOLID for 1 SOLID.
veSOLID owners will receive the following benefits:
- All fees are generated by the groups they vote for.
- A large amount of SOLID emissions.
- The right to vote on which AMM group will be promoted.
Development Roadmap
Update, ..
Core Team
The person behind developing Solidly is Andre Cronje.
Andre Cronje – Founder
- Year 2001- 2003: André Cronje studied at Stellenbosch University, majoring in Law.
- In 2005: André Cronje studied at CTI Education Group majoring in ISE, Information Systems.
- 2005 – 2006: André Cronje was a computer training instructor at CTI education group.
- 2010 – 2013: André Cronje was Chief Technology Officer at Mobile Game Card Applications, a mobile game application company.
- 2013 -2018: André Cronje worked as Head of Technology at Freedom Life, technology in financial services.
- March 2018 – September 2018: André Cronje worked as Blockchain Protocol Advisor for BitDiem, created a protocol framework on Ethereum.
- August 2018 – March 2019: André Cronje is a Blockchain Infrastructure Engineer at CryptoCurve.
- June 2018 – June 2019: André Cronje worked as a Technology Analyst at Lemniscap, a new cryptocurrency investment and consulting company.
- August 2018 – September 2019: André Cronje worked at Fusion Foundation as Head of Technology.
- 2018 – 2022: André Cronje is Head of Electronic Code Review at CryptoBriefing.
- October 2018 – 2022: André Cronje started working at Fantom Foundation as a Technical Consultant.
- January 2020: André Cronje and his partners founded Yearn Finance.
- January 2020 – February 2022: André Cronje worked as DeFi Architect at Ethereum.
- November 2022: André Cronje works as Director at Fantom Foundation.
- February 2022: André Cronje founded Solidly.
Investor
Update, ..
Tokenomics
Overview information about SOLID token
- Token name: Token Solidly
- Ticker: SOLID
- Contract: 0x777172d858dc1599914a1c4c6c9fc48c99a60990
- Blockchain: Fantom
- Token classification: ERC – 20
- Total supply: 79,097,237
Token Allocation
According to the initial token allocation will be:
- Liquidity Mining: 80%
- Partners: 20%
Token Release
Of the 73.7 million SOLIDs that have been migrated from Fantom, 95% are locked into veSOLID and locked for 4 years.
Token Use Case
Currently the SOLID token is used for the following purposes:
- Used to vote on project governance.
- Used for staking.
- Use as a reward.
Exchanges
Currently SOLID tokens are being traded on exchanges such as Uniswap V2, Solidy, ..
Project Information Channel
- Website: https://solidly.com/
- Discord:
Summary
Above is the information the Weakhand team learned about Solidly. The project is a combination of models of Uniswap V2, Curve Finance, Olympus Dao, and was founded by Defi godfather André Cronje. But after André Cronje left the project, which was on the decline, the project no longer developed actively.